I was poised somewhat tentatively to place a combo- risk reversal as usual- selling 4450 calls to buy 4000 puts- May series, and put in a price of a credit of 2. It must have teetered on 1.5 a couple of times, and I didn't want to chase the trade, as I am still out of sorts, but it would have been perfect with Dow now negative, I could have run the trade or taken a profit of 12 per lot.
These are like futures trades but you don't get smashed to bits by volatility, so sometimes futures trades are stopped out when right on the trade, correct in your stop position but some genius decides to take everyone's stops out. there is no answer to that as futures traders will attest, it's just the 'rent on the shop' but with our option combos we can make nice stress free trades-especially as I have now figured out what to do when a combo goes horribly against you. (price of this info? £25K)
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